Correlation Between Mainstay Cbre and Ab High
Can any of the company-specific risk be diversified away by investing in both Mainstay Cbre and Ab High at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mainstay Cbre and Ab High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mainstay Cbre Global and Ab High Income, you can compare the effects of market volatilities on Mainstay Cbre and Ab High and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mainstay Cbre with a short position of Ab High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mainstay Cbre and Ab High.
Diversification Opportunities for Mainstay Cbre and Ab High
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mainstay and AGDAX is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Mainstay Cbre Global and Ab High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab High Income and Mainstay Cbre is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mainstay Cbre Global are associated (or correlated) with Ab High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab High Income has no effect on the direction of Mainstay Cbre i.e., Mainstay Cbre and Ab High go up and down completely randomly.
Pair Corralation between Mainstay Cbre and Ab High
Assuming the 90 days horizon Mainstay Cbre Global is expected to generate 3.32 times more return on investment than Ab High. However, Mainstay Cbre is 3.32 times more volatile than Ab High Income. It trades about 0.14 of its potential returns per unit of risk. Ab High Income is currently generating about 0.28 per unit of risk. If you would invest 1,208 in Mainstay Cbre Global on September 13, 2024 and sell it today you would earn a total of 137.00 from holding Mainstay Cbre Global or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mainstay Cbre Global vs. Ab High Income
Performance |
| Timeline |
| Mainstay Cbre Global |
| Ab High Income |
Mainstay Cbre and Ab High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mainstay Cbre and Ab High
The main advantage of trading using opposite Mainstay Cbre and Ab High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mainstay Cbre position performs unexpectedly, Ab High can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ab High will offset losses from the drop in Ab High's long position.| Mainstay Cbre vs. Mainstay Tax Free | Mainstay Cbre vs. Mainstay Large Cap | Mainstay Cbre vs. Mainstay Large Cap | Mainstay Cbre vs. Mainstay Large Cap |
| Ab High vs. Absolute Convertible Arbitrage | Ab High vs. Gabelli Convertible And | Ab High vs. Advent Claymore Convertible | Ab High vs. Allianzgi Convertible Income |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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